Where can I invest Rs 10,000 per month for next 60 months?

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Jul 19, 2018, 11.26 AM IST

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I can invest Rs 10,000 per month through SIPs for 60 months. My goal is to earn more on idle money. Which are the top three mutual funds that will give me good returns with moderate risk. I am a salaried person, and I am 57 years old.

-- Debopam Majumdar

You have only mentioned how long you want to invest, not how long you plan to hold your SIP investments. It is important because most mutual fund advisors would ask you to invest in equity mutual fund schemes only if you have a horizon of at least five years. However, when you are investing through SIPs for five years, only the first SIP instalment would complete five years at the end of your 60-months SIP tenure.

If you have five years and the ability to take some extra risk, you may invest in an aggressive hybrid fund. These schemes invest at least 65-80 per cent of their corpus in equity and 20-35 per cent of the corpus in debt. They are relatively less volatile than pure equity schemes that invest the entire corpus in equity. They are a good investment option for conservative equity investors.

If you do not want to take much risk, you may opt for conservative hybrid schemes. These schemes invest a small part (10-25 per cent) of their corpus in equity and the rest (75-90 per cent) in debt. The equity portion would help you to earn some extra returns.